Hasan bought 10 shares of stock in a company two years ago. He feels like he hit the jackpot because the company has given him additional shares of stock at the end of four of the last five quarters. This additional stock can be best described as a
A) dividend.
B) split.
C) portfolio.
D) commodity.
E) diversification.

Question

Quizplus · Accepted Answer

The additional shares of stock given to Hasan by the company are best described as a dividend. In this context, it refers to a stock dividend, which is a dividend payment made in the form of additional shares rather than a cash payout.

Hasan Bought 10 Shares of Stock in a Company Two